Comprehensive Income=Net Income + Other comprehensive income

Other comprehensive income = PUFE

i.e.,

Pension changes in funded status

unrealized gain/loss from available for sale securities

Foreign currency items-foreign exchange gains /losses in transalations and economic hedges

Effective portionof cash flow hedges

Accumulated other comprehensive income is similar to retained earnings in the sense:

Retained earnings= opening balance+current year net income

and

Accumulated other comprehensive income=opening balance of accumulated other comprehenseive income+current year other comprehensive income i.e PUFE

Accumulated other comprehensive income is presented as part of shareholders equity in the balance sheet after retained earnings.

hope it helps.

sanju such a nice explanation.. i think ur concepts a very very clear...

can u pls help me to explain the effect of pension in OCI ..i am not able to understand i.e the balance effect .. i amable to understand the I/S effect totally .i.e the SIRAGE  .. pls help if u can

Thanks jrupa. But I haven't started pensions as yet. I am planning to start it today.